If an insured returns to work part-time and still receives some disability benefits, this is called

• A. Presumptive Disability
• B. Partial Disability
• C. Residual Disability
• D. Total Disability

Answer: (C)

Residual disability is the provision that pays a portion of the disability benefit when the insured returns to work but earns less than before due to the impairment. The benefit is calculated to replace the income lost from reduced earnings, while the policy still pays when part-time work continues. This matches the scenario of going back to work part-time and still receiving some disability money.

For context, total disability means no work at all, and presumptive disability covers permanent loss of certain functions (like sight or hearing). Partial disability is related but generally describes being unable to perform all duties or needing to work only part-time, whereas residual disability specifically addresses continuing income loss after returning to work. Example: pre-disability earnings $3,000/month; after returning part-time, earnings $1,800/month. The policy would pay the difference (up to the full benefit) as a residual benefit.